Roche (OTCQX:RHHBY) (OTCQX:RHHBF) warned that it expects a decrease in Group sales due to a sharp decline in sales of COVID-19 products of about CHF5B.
FY22 Core EPS rose +2% on CHF basis Y/Y to CHF20.30 (+5% Y/Y at constant exchange rates – CER).
Group sales increased ~1% Y/Y (+2% CER) to CHF63.28B, despite lower COVID-19-related sales in both divisions, according to the company.
“We achieved good results in 2022, even though the demand for COVID-19 products declined, as expected. The diagnostics base business and our newer medicines continued their strong growth. While we had pipeline setbacks in 2022, I am particularly pleased that we brought two new medicines to patients: Vabysmo for certain severe eye diseases and Lunsumio for a currently incurable form of blood cancer,” said Roche CEO Severin Schwan.
Sales from the Pharmaceuticals division increased +1% Y/Y (+2 CER) to CHF45.55B.
Roche said that growth of newer medicines more than compensating for the impact of biosimilars and lower sales of Actemra/RoActemra (severe COVID-19).
COVID therapy Ronapreve sales grew +17% at CER to CHF1.68B. The Swiss pharma giant said the sales increased due to supplies of Ronapreve to the Japanese government.
FY22 sales of Hemophilia A therapy Hemlibra grew +27% at CER Y/Y to CHF3.82B, while revenue from multiple sclerosis drug Ocrevus increased +17% at CER Y/Y to ~CHF6.04B.
Sales of cancer drug Tecentriq increased +14% at CER to ~CHF3.72B. Spinal muscular atrophy therapy Evrysdi grew +87% at CER to CHF1.1B.
Eye medicine Vabysmo, which was launched at the beginning of 2022, generated CHF591M, in FY22.
Meanwhile, breast cancer drug Herceptin’s sales declined -19% at CER Y/Y to CHF2.14B. Avastin sales fell -28% at CER Y/Y to CHF2.12B.
MabThera/Rituxan revenue declined -21% at CER Y/Y to CHF1.6B.
Total Oncology sales fell -1% at CER to ~CHF20B, while total Neuroscience segment sales grew +23% at CER to CHF7.82B. Total Immunology segment sales fell -14% at CER to CHF14.81B.
Sales from the Diagnostics Division in FY22 were largely flat at CHF17.73B (0% at CHF and +3% at CER).
Dividend: Roche said the board proposed a dividend increase to CHF 9.50.
Outlook:
“For the current year we expect solid underlying growth in both divisions, which will largely compensate for the further significant drop in sales of roughly CHF 5 billion in COVID-19 products,” said Schwan.
Roche said that due to the sharp decline in sales of COVID-19 products of about CHF5B, it expects a decrease in Group sales in the low single digit range (at CER). Excluding this COVID-19 sales decline, Roche anticipates solid underlying sales growth in both divisions.
Core EPS are targeted to develop broadly in line with sales decline (at CER).
Dividend: Roche noted that it expects to further increase its dividend in Swiss francs.